30. The Williams are a married couple with two children, age 12 and 13, which they fully support. Neither is over 65 or blind. There is no self-employment income. Use the following information about their 2021 finances to answer the following question.

Gross income (no dividends or cap. gains) $427,725

Deductions for A.G.I. 2,000

Itemized deductions (state taxes & mortgage

interest) 29,300

Federal income taxes withheld 66,000

What is the amount, rounded to the nearest dollar, of the remaining Federal income taxes the Williams owe or the refund they will receive? Use the rate schedule on the back cover of the book (not the Tax Table in Appendix A).

a. $22,510 due

b. $16,510 due

c. $19,810 due

4. $15,310 due
5. $17,810 due
6. None of the above

____ 31. H files head of household. He has three dependent children ages 5, 10, and 16. His AGI is $170,000. How much is his child and dependent tax credit for 2021?

a. $3,600

b. $6,000

c. $6,700

d. $700

e. $4,375

____ 32. The accountants concept of income is distinguished from the economists by

a. the principle of accrual.

b. the principle of relativity.

c. the principle of realization.

d. none of the above.